Which of the following is NOT one of Porter’s Five Forces?

• A. Threat of new entrants
• B. Bargaining power of suppliers
• C. Threat of substitutes
• D. Regulatory environment

Answer: (D)

Porter's Five Forces framework looks at how five competitive pressures shape an industry's profitability and attractiveness: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitutes, and rivalry among existing competitors. The regulatory environment is not one of these five forces. It’s a broader external factor that can influence how strong the other forces are—by raising barriers to entry, changing costs, or affecting supplier and buyer dynamics—but it isn’t itself counted as a separate force in Porter’s model. So the regulatory environment isn’t part of the five forces, making it the correct answer. The remaining options map directly onto the five forces: new entrants, supplier power, and substitutes.